Solteq Oyj - Interim report (Q1 and Q3)

Solteq Plc Interim Report January 1 – September 30, 2021

Solteq Plc Stock Exchange Bulletin October 28, 2021 at 8.00 am

The company continued its growth, driven by the Utilities business

July–September

  · Revenue totaled EUR 14.9 million (13.3) and increased by 12.2 percent
  · EBITDA was EUR 2.4 million (2.7) and EBITDA percent was 16.2 (20.4)
  · Operating profit was EUR 1.1 million (1.4) and operating profit percent was
7.6 (10.3)
  · Earnings per share was EUR 0.03 (0.03)

January–September

  · Revenue totaled EUR 50.8 million (44.0) and increased by 15.3 percent
  · EBITDA was EUR 9.6 million (7.3) and EBITDA percent was 19.0 (16.6)
  · Operating profit was EUR 5.8 million (3.6) and operating profit percent was
11.4 (8.1)
  · Earnings per share was EUR 0.18 (0.07)
  · Solteq Group’s equity ratio was 36.8 percent (35.0)
  · Net cash flow from operating activities was EUR 7.4 million (4.2)

Key figures

            7-9/202  7-9/202  Change  1-9/202  1-9/202  Change  1-12/20  Rolling
                                   %        1        0       %       20    12mos
                  1        0

Revenue,     14,909   13,289    12.2   50,779   44,044    15.3   60,452   67,187
TEUR
EBITDA,       2,422    2,715   -10.8    9,638    7,300    32.0   10,380   12,719
TEUR
Comparable    2,502    2,715    -7.8    9,824    7,490    31.2   10,810   13,144
EBITDA,
TEUR
Operating     1,130    1,365   -17.2    5,802    3,563    62.8    5,350    7,589
profit,
TEUR
Comparable    1,210    1,365   -11.3    5,988    3,753    59.6    5,780    8,015
operating
profit,
TEUR
Profit for      490      539    -9.2    3,496    1,358   157.5    1,980    4,119
the
financial
period,
TEUR
Earnings       0.03     0.03   -10.1     0.18     0.07   156.8     0.10     0.21
per
share, EUR
Operating       7.6     10.3             11.4      8.1              8.9     11.3
profit,
%
Comparable      8.1     10.3             11.8      8.5              9.6     11.9
operating
profit,
%
Equity                                   36.8     35.0             35.5     36.0
ratio, %

CEO Olli Väätäinen’s review:

Solteq Group continued its growth in the third quarter. The Group’s revenue was
EUR 14.9 million, up by 12.2 percent from the comparison period. The growth was
mainly organic. Revenue from foreign subsidiaries increased relative to the
comparison period and accounted for 22.6 percent of the Group’s revenue. Solteq
Software segment accounted for just over one-third of the Group’s revenue, and
Solteq Digital segment for just under two-thirds. The growth was fueled by
Solteq Software's Utilities business and the market demand for Solteq Digital’s
ecommerce solutions.

The Group’s EBITDA was EUR 2.4 million, which decreased by 10.8 percent relative
to the comparison period. The Group’s operating profit decreased by 17.2 percent
from the comparison period and was EUR 1.1 million. The result of the third
quarter was affected by two significant factors: The global component shortage
caused unforeseen delays in customer projects. Due to challenges with hardware
supply, two large-scale retail customer deliveries had to be postponed from the
review period to the first half of 2022. The shortage of IT experts increased
subcontracting costs relative to the comparison period.

Solteq Digital and Solteq Software segments continued to grow during the third
quarter. Relative to the comparison period, the revenue in Solteq Digital
increased by 4.3 percent and in Solteq Software by 29.7 percent. In Solteq
Software, the EBITDA decreased by 17.2 percent and the operating profit by 55.3
percent relative to the comparison period. In Solteq Digital, the EBITDA
decreased by 6.0 percent, but the operating profit increased by 8.1 percent
relative to the comparison period.

As the operating environment continues to return to normal, the business outlook
for Solteq Group and the demand in the key solution areas of the company remain
stable both domestically as well as internationally. The digital future affects
everyone. Keeping up with the latest developments is therefore on the current
and future agendas of companies of different sizes and in various sectors.

Profit guidance 2021

Solteq Group’s revenue is expected to grow clearly and operating profit to
improve clearly.

Attachments
Solteq Plc Interim Report January 1 – September 30, 2021

Further information
CEO Olli Väätäinen
Tel: +358 50 557 8111
E-mail: olli.vaatainen@solteq.com

CFO Kari Lehtosalo
Tel: +358 40 701 0338
E-mail: kari.lehtosalo@solteq.com

Distribution
NASDAQ OMX Helsinki
Key media
www.solteq.com (https://investors.solteq.com/)
About Solteq:

Solteq is a Nordic provider of IT services and software solutions
specializing in the digitalization of business and industry-specific software.
The key sectors in which the company has long term experience include retail,
manufacturing, energy and services. The company operates in Finland, Sweden,
Norway, Denmark, Poland and the UK and employs over 650 professionals.

Attachments:

10276408.pdf

Interim Report Q3 2021.pdf